Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACTS: Media Glen Mathison (415) 636-5448
Investors/Analysts Rich Fowler (415) 636-9869
SCHWAB REPORTS QUARTERLY RESULTS
NET NEW ASSETS TOTAL $23 BILLION, REVENUES RISE 14%
SAN FRANCISCO, October 17, 2005 - The Charles Schwab Corporation announced
today that its net income for the quarter ended September 30, 2005 was $207
million. In comparison, the Company reported a net loss of $41 million for the
third quarter of 2004 and net income of $186 million for the second quarter of
2005. For the nine months ended September 30, 2005, the Company's net income was
$538 million, compared with net income of $233 million during the same period in
2004.
Three Months Ended Nine Months Ended
--September 30,-- % --September 30,-- %
Financial Highlights 2005 2004 Change 2005 2004 Change
- --------------------------------------------------------------------------------
Revenues (in millions) $1,138 $1,000 14% $3,284 $3,142 5%
Net income (loss) (in millions) $207 $(41) n/m $538 $233 131%
Diluted earnings per share $.16 $(.03) n/m $.41 $.17 141%
Pre-tax profit margin(1) 28.9% 7.2% 26.7% 15.4%
Return on stockholders' equity 19% (3)% 16% 7%
1. From continuing operations.
n/m - not meaningful
- --------------------------------------------------------------------------------
Note: The three and nine month periods ended September 30, 2004 reflect
after-tax restructuring charges of $70 million and $71 million, respectively,
and after-tax losses from discontinued operations of $87 million and $79
million, respectively. See Reconciliation of Net Income to Adjusted Operating
Income for additional information.
Chairman and CEO Charles Schwab commented, "Over the last fifteen months,
our primary focus has been restoring our value proposition and reconnecting with
our clients. Our success in this effort is reflected in Schwab's business
momentum - September marked our fourth consecutive month of net new assets in
excess of $6 billion and our net new assets of $23.4 billion for the third
quarter of 2005 were 80% higher than last year's third quarter. Total client
assets set a new record of $1.166 trillion at month-end September, up 16% from
September 2004. Our total revenues increased by 14% versus a year ago and our
net income rose to $207 million for the quarter, the second-highest level in our
history."
"To build on this foundation, Schwab is now focused on forging a new era of
profitable growth by developing stronger relationships with our clients and
helping them achieve better financial outcomes," Mr. Schwab continued. "Our
commitment to driving profitable growth is reflected in our recent announcements
regarding a new national advertising campaign, eliminating account service and
order handling fees, and the expanded availability of managed accounts to all of
our retail brokerage clients."
CFO Christopher Dodds said, "Schwab has now achieved ten consecutive
quarterly increases in its non-trading revenues, as the Company continues to
benefit from its strength in attracting client assets and the rising interest
rate environment. Non-trading revenues accounted for 84% of Schwab's total third
quarter revenues. Our revenue growth, combined with our ongoing focus on expense
discipline, yielded a 29% pre-tax margin for the third quarter of 2005 and a
year-to-date pre-tax margin of 27%. Capital management remains a priority - we
limited our capital expenditures to $25 million and repurchased $190 million of
common stock during the third quarter, which helped the Company achieve a 19%
return on equity, the highest quarterly level since the first quarter of 2000."
Mr. Dodds added, "Client engagement continues to be strong thus far in
October - daily average revenue trades for the first nine trading days of the
month totaled 229,000."
Business highlights for the third quarter (data as of quarter-end unless
otherwise noted):
Advised Investing
o For accounts at the Company with an ongoing advice component (includes
accounts enrolled in Schwab Private Client(TM) and Schwab Advised
Investing(TM), accounts managed by independent investment advisors (IAs),
and U.S. Trust(R) accounts):
o Net new client assets during the quarter = $16.4 billion.
o Total assets = a record $568 billion, up 20% year-over-year.
o Total number of accounts = 1.6 million.
Individual Investor Business
o Number of clients enrolled in Schwab Private Client and Schwab Advised
Investing = 55,600, up 7% from the prior quarter.
o Eliminated account service fees on U.S. individual brokerage accounts(1) and
the $3.00 order handling fee on equity trades.
o Enhanced operating efficiency and client service by automating the archival
of forms and electronic signatures.
Schwab Institutional(R) Business
o Total client assets associated with Schwab Institutional (SI) = $388
billion, up 23% year-over-year.
o Client assets new to the Schwab Advisor Network(R) program during the
quarter = $1.7 billion, up 17% year-over-year.
o Client assets at Schwab associated with IA referral programs = $28.5
billion, up 25% year-over-year.
o Announced enhancements to the PortfolioCenter(R) portfolio management
system, with the addition of Export Wizard and PortfolioCenter Relationship
Manager(R), which help IAs identify the difference between a portfolio's
investment holdings and its target allocation, and enable them to more
efficiently prepare and transmit trade instructions.
o Hosted the IMPACT(R) 2005 Conference, drawing a record number of more than
2,000 IAs, exhibitors and strategic partners, and featuring more than 30
educational sessions, forums and workshops.
Corporate Services Business
o Net new assets during the quarter = $2.3 billion.
o Total client assets in employer-sponsored retirement plans at Schwab = $143
billion, up 17% year-over-year.
- --------------------------------
1 Account service fees are periodic fees automatically charged to accounts that
fail to meet asset, trading, or other published thresholds. Other fees still
apply. Accounts exempt from account service fees are subject to a minimum
balance charge of $30 per quarter for brokerage accounts or $50 per year for
IRAs if, after receipt of notice and a notice period, their assets remain below
account opening minimums of $2,500 for brokerage accounts or $2,000 for IRAs.
The minimum balance charge is waived for accounts of households with balances of
at least $10,000 or at least eight equity and/or options trades in the preceding
12 months. Excludes QRP, CRA, individual 401(k), 403(b)(7), SIMPLE IRA - plan
level accounts, and all accounts held by clients who reside outside the U.S.,
its territories or possessions.
U.S. Trust Business
o Total referrals from Schwab to U.S. Trust were over 350, compared with over
360 in the prior quarter.
o Client assets at U.S. Trust associated with the referral program = $5.6
billion, up 33% year-over-year and up $586 million from the prior quarter.
o Total client assets at U.S. Trust = $146.9 billion, up 7% year-over-year.
Products
o Total client assets held in third-party Mutual Fund OneSource(R) funds =
$131 billion, up 14% year-over-year.
o Total client assets held in proprietary funds (Schwab Funds(R), Excelsior(R)
and other) = $161 billion, up 6% year-over-year.
o Total client assets held in fixed income securities = $151 billion, up 11%
year-over-year.
o For Charles Schwab Bank, N.A.:
o Balance sheet assets = $5.9 billion, up 14% from the prior quarter.
o Outstanding mortgage and home equity loans = $1.8 billion.
o First mortgage originations during the quarter = $423 million.
o Launched the Schwab Large-Cap Growth Fund(TM), a new fund that seeks
long-term capital growth and will use Schwab Equity Ratings(R) to help
identify stocks with excellent performance potential.
o Debuted Schwab's ETF Center, offering clients access to exchange traded
funds (ETF) through a single location that integrates research, selection,
ratings, analysis and trading.
o Commenced offering a number of Schwab mutual funds, including most of
Schwab's active equity funds, all 10 fixed income funds and the Laudus
MarketMasters Funds(TM), through third-party distributors to non-Schwab
clients.
The Charles Schwab Corporation (NYSE / Nasdaq: SCH), through its operating
subsidiaries, provides securities brokerage and financial services to individual
investors and the independent investment advisors who work with them. With over
7 million individual investor accounts and more than $1 trillion in client
assets, The Charles Schwab Corporation is one of the nation's largest financial
services firms. Its subsidiary Charles Schwab & Co., Inc. (member SIPC) provides
a complete range of investment services and products, including an extensive
selection of mutual funds; financial planning and investment advice; retirement
plans; referrals to independent fee-based investment advisors; and custodial,
operational and trading support for independent fee-based investment advisors.
Its subsidiary Charles Schwab Bank, N.A. (member FDIC) provides banking and
mortgage services and products. The corporation's other operating subsidiaries
include U.S. Trust Corporation (member FDIC) and CyberTrader(R), Inc. (member
SIPC). These companies' Web sites can be reached at www.schwab.com,
www.schwabbank.com, www.ustrust.com, and www.cybertrader.com.
###
THE CHARLES SCHWAB CORPORATION
Consolidated Statement of Income
(In millions, except per share amounts)
(Unaudited)
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Three Months Nine Months
Ended Ended
September 30, September 30,
2005 2004 2005 2004
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Revenues
Asset management and administration fees $ 584 $ 523 $1,683 $1,547
Trading revenue 187 185 581 807
Interest revenue 509 317 1,385 855
Interest expense (178) (72) (483) (177)
--------- --------- --------- ---------
Net interest revenue 331 245 902 678
Other 36 47 118 110
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Total 1,138 1,000 3,284 3,142
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Expenses Excluding Interest
Compensation and benefits 481 455 1,390 1,430
Occupancy and equipment 83 97 246 299
Professional services 66 62 185 181
Depreciation and amortization 52 58 157 167
Communications 46 53 145 170
Advertising and market development 39 43 118 151
Restructuring charges (4) 112 17 114
Other 46 48 148 145
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Total 809 928 2,406 2,657
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Income from continuing operations before taxes on income 329 72 878 485
Taxes on income (123) (26) (335) (173)
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Income from continuing operations 206 46 543 312
Gain (loss) from discontinued operations, net of tax 1 (87) (5) (79)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Income (Loss) $ 207 $ (41) $ 538 $ 233
====================================================================================================================================
Weighted-Average Common Shares Outstanding - Diluted 1,308 1,364 1,316 1,370
- ------------------------------------------------------------------------------------------------------------------------------------
Earnings Per Share - Basic
Income from continuing operations $ .16 $ .03 $ .42 $ .23
Gain (loss) from discontinued operations, net of tax - $ (.06) $ (.01) $ (.06)
Net income (loss) $ .16 $ (.03) $ .41 $ .17
Earnings Per Share - Diluted
Income from continuing operations $ .16 $ .03 $ .41 $ .23
Gain (loss) from discontinued operations, net of tax - $ (.06) - $ (.06)
Net income (loss) $ .16 $ (.03) $ .41 $ .17
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends Declared Per Common Share $ .022 $ .020 $ .064 $ .054
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See Notes to Consolidated Statement of Income and Financial and Operating Highlights.
THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
| 2005 | 2004 | 2003 |
- ------------------------------------------------------------------------------------------------------------------------------------
Third Second First Fourth Third Second First Fourth Third
(In millions, except per share amounts and as noted) Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
- ------------------------------------------------------------------------------------------------------------------------------------
Revenues
Asset management and administration fees $ 584 $ 552 $ 547 $ 544 $ 523 $ 517 $ 507 $ 487 $ 468
Trading revenue (1) 187 187 207 218 185 261 361 327 312
Interest revenue, net of interest expense 331 297 274 258 245 224 209 193 181
Other 36 51 31 40 47 32 31 55 36
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Total 1,138 1,087 1,059 1,060 1,000 1,034 1,108 1,062 997
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses Excluding Interest
Compensation and benefits 481 455 454 447 455 493 482 435 418
Occupancy and equipment 83 81 82 90 97 100 102 108 106
Professional services 66 57 62 64 62 61 58 52 44
Depreciation and amortization 52 51 54 59 58 53 56 65 69
Communications 46 48 51 53 53 56 61 59 59
Advertising and market development 39 43 36 33 43 46 62 39 31
Restructuring charges (2) (4) - 21 100 112 2 - 17 35
Other 46 49 53 54 48 54 43 54 39
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Total 809 784 813 900 928 865 864 829 801
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Income from continuing operations before taxes on income 329 303 246 160 72 169 244 233 196
Taxes on income (123) (117) (95) (58) (26) (62) (85) (87) (72)
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Income from continuing operations 206 186 151 102 46 107 159 146 124
Gain (loss) from discontinued operations, net of tax 1 - (6) (49) (87) 6 2 2 3
- ------------------------------------------------------------------------------------------------------------------------------------
Net Income (Loss) $ 207 $ 186 $ 145 $ 53 $ (41) $ 113 $ 161 $ 148 $ 127
====================================================================================================================================
Basic earnings (loss) per share $ .16 $ .14 $ .11 $ .04 $ (.03) $ .08 $ .12 $ .11 $ .09
Diluted earnings (loss) per share $ .16 $ .14 $ .11 $ .04 $ (.03) $ .08 $ .12 $ .11 $ .09
Dividends declared per common share $ .022 $ .022 $ .020 $ .020 $ .020 $ .020 $ .014 $ .014 $ .014
Weighted-average common shares outstanding - diluted 1,308 1,314 1,326 1,348 1,364 1,373 1,375 1,371 1,366
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Performance Measures
Revenue growth (decline) over prior year's quarter 14% 5% (4%) - - 6% 28% 12% 1%
Pre-tax profit margin from continuing operations 28.9% 27.9% 23.2% 15.1% 7.2% 16.3% 22.0% 21.9% 19.7%
Return on stockholders' equity (3) 19% 17% 13% 5% (3%) 10% 14% 13% 12%
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Financial Condition (at quarter end)
Cash and investments segregated (in billions) $ 15.5 $ 17.4 $ 18.5 $ 19.0 $ 19.6 $ 20.5 $ 20.8 $ 21.3 $ 22.4
Receivables from brokerage clients (in billions) $ 10.4 $ 9.9 $ 9.7 $ 9.8 $ 9.2 $ 9.3 $ 9.3 $ 8.6 $ 7.7
Total assets (in billions) $ 45.4 $ 46.5 $ 46.4 $ 47.1 $ 45.9 $ 47.3 $ 46.3 $ 45.9 $ 43.8
Payables to brokerage clients (in billions) $ 23.9 $ 25.4 $ 26.4 $ 27.2 $ 25.9 $ 26.9 $ 26.5 $ 27.2 $ 26.1
Long-term debt (in millions) $ 537 $ 565 $ 577 $ 585 $ 611 $ 645 $ 779 $ 772 $ 776
Stockholders' equity (in millions) $4,349 $4,318 $4,275 $4,386 $4,555 $4,732 $4,662 $4,461 $4,312
- ------------------------------------------------------------------------------------------------------------------------------------
Other
Full-time equivalent employees (at quarter end,
in thousands) 13.7 13.6 13.9 14.2 14.8 16.3 16.5 16.0 15.7
Capital expenditures - cash purchases of equipment,
office facilities, property, and internal-use
software development costs, net (in millions) $ 25 $ 29 $ 23 $ 43 $ 66 $ 51 $ 34 $ 50 $ 36
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Clients' Daily Average Trades (in thousands) (4)
Revenue trades (5) 194.7 176.5 191.3 177.7 128.1 142.2 178.0 161.7 145.1
Schwab Institutional(R) (6) 12.7 10.2 9.9 8.7 8.2 8.4 8.5 N/A N/A
Schwab Private Client(TM) (7) 14.2 11.3 10.0 9.4 7.8 6.8 5.6 N/A N/A
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Total 221.6 198.0 211.2 195.8 144.1 157.4 192.1 N/A N/A
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Active Trader Daily Average Revenue Trades
(in thousands) (5,8) 115.6 101.8 106.0 98.0 66.1 72.5 91.5 80.8 72.9
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Average Revenue Per Revenue Trade (5) $15.05 $16.28 $17.95 $19.32 $22.96 $30.06 $33.16 $32.60 $34.11
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(1) Trading revenue includes commission and principal transaction revenues.
(2) Restructuring charges include costs relating to workforce, facilities, systems hardware, software, and equipment reductions.
(3) Calculated based on annualized quarterly net income (loss) and average stockholders' equity for the quarter.
(4) Schwab Institutional(R) and Schwab Private Client(TM) (SPC) trading information for periods prior to 2004 is not available.
(5) Revenue trades include all client trades (both individuals and institutions) that generate trading revenue (i.e., commission
revenue or revenue from fixed income securities trading); also known as DART.
(6) Includes trades placed by investment advisors enrolled in an asset-based pricing program. Trading activity is included in the
program fees.
(7) Includes eligible trades placed by individual investors enrolled in SPC. Specified levels of trading activity are included in
SPC fees.
(8) Active Trader includes all CyberTrader clients and Schwab clients enrolled in Schwab's Active Trader offer. Active Trader DART
is included in total DART above.
N/A Not available.
See Notes to Consolidated Statement of Income and Financial and Operating Highlights.
THE CHARLES SCHWAB CORPORATION
Reconciliation of Net Income to Adjusted Operating Income
(Unaudited)
| 2005 | 2004 | 2003 |
- ------------------------------------------------------------------------------------------------------------------------------------
First Fourth Third Second First Fourth Third
(In millions) Quarter Quarter Quarter Quarter Quarter Quarter Quarter
- ------------------------------------------------------------------------------------------------------------------------------------
Revenues $1,059 $1,060 $1,000 $1,034 $1,108 $1,062 $ 997
Non-operating revenue (1) - - (14) - - (17) -
- ------------------------------------------------------------------------------------------------------------------------------------
Operating revenues $1,059 $1,060 $ 986 $1,034 $1,108 $1,045 $ 997
====================================================================================================================================
Net income (loss) $ 145 $ 53 $ (41) $ 113 $ 161 $ 148 $ 127
Adjustments to reconcile net income (loss)
to adjusted operating income:
Other income (1) - - (14) - - (17) -
Restructuring charges (2) 21 100 112 2 - 17 35
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Total adjusted items 21 100 98 2 - - 35
Tax (benefit) expense (8) (38) (37) (1) - 1 (15)
Loss (gain) from discontinued operations,
net of tax (3) 6 49 87 (6) (2) (2) (3)
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Total adjusted items, net of tax 19 111 148 (5) (2) (1) 17
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Adjusted operating income, after tax (4) $ 164 $ 164 $ 107 $ 108 $ 159 $ 147 $ 144
====================================================================================================================================
(1) Primarily consists of pre-tax gains recorded on sales of investments.
(2) Restructuring charges reflect The Charles Schwab Corporation's (the Company's) 2004 cost reduction effort and previous
restructuring initiatives under the Company's plan to reduce operating expenses due to continued economic uncertainties and
difficult market conditions. These charges primarily include workforce, facilities, systems hardware, software, and equipment
reductions.
(3) Represents the summarized impact of the Company's sales of its capital markets business and its U.K. brokerage subsidiary. In
the first quarter of 2005, includes a tax adjustment, severance costs for transitional employees, and facility exit costs
associated with the Company's sale of its capital markets business.
(4) In evaluating the Company's financial performance through the first quarter of 2005, management has used adjusted operating
income, a non-GAAP income measure which excludes items as detailed in the table above. Management believes that adjusted
operating income was a useful indicator of its historical financial performance, and a tool that provided meaningful insight
into financial performance without the effects of certain material items.
The Charles Schwab Corporation
Notes to Consolidated Statement of Income and Financial and Operating Highlights
(Unaudited)
The Company
The consolidated statement of income and financial and operating highlights include The Charles Schwab Corporation and its
majority-owned subsidiaries (collectively referred to as the Company), including Charles Schwab & Co., Inc., U.S. Trust
Corporation, and CyberTrader, Inc. Prior period amounts have been adjusted to summarize the impact of the Company's sales of its
capital markets business, Schwab Soundview Capital Markets, and its U.K. brokerage subsidiary, Charles Schwab Europe, in gain
(loss) from discontinued operations. The consolidated statement of income and financial and operating highlights should be read
in conjunction with the consolidated financial statements and notes thereto included in the Company's 2004 Annual Report on Form
10-K for the year ended December 31, 2004 and the Company's Quarterly Reports on Form 10-Q for the periods ended March 31 and
June 30, 2005. Certain prior periods' revenues and expenses have been reclassified to conform with the current period
presentation. All material intercompany balances and transactions have been eliminated.
**********
THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)
| 2005 | 2004 | 2003 |
- ------------------------------------------------------------------------------------------------------------------------------------
Third Second First Fourth Third Second First Fourth Third
(In billions, at quarter end, except as noted) Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
- ------------------------------------------------------------------------------------------------------------------------------------
Assets in client accounts
Schwab One(R), other cash equivalents and
deposits from banking clients $ 36.3 $ 37.0 $ 37.5 $ 37.2 $ 35.7 $ 36.5 $ 35.4 $ 34.2 $ 31.8
Proprietary funds (Schwab Funds(R),
Excelsior(R) and other):
Money market funds 111.2 109.7 112.0 111.8 114.0 115.0 116.3 119.2 124.4
Equity and bond funds 50.1 46.3 46.4 43.1 38.4 37.5 36.8 34.2 30.7
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Total proprietary funds 161.3 156.0 158.4 154.9 152.4 152.5 153.1 153.4 155.1
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Mutual Fund Marketplace(R) (1):
Mutual Fund OneSource(R) 130.7 125.1 122.2 127.8 114.5 115.2 115.1 101.5 90.1
Mutual fund clearing services 57.3 51.2 47.1 44.2 38.1 33.9 37.5 33.5 28.4
Other third-party mutual funds 138.1 126.4 120.3 114.4 103.6 101.7 100.5 98.4 88.3
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Total Mutual Fund Marketplace 326.1 302.7 289.6 286.4 256.2 250.8 253.1 233.4 206.8
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Total mutual fund assets 487.4 458.7 448.0 441.3 408.6 403.3 406.2 386.8 361.9
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Equity and other securities (1,2) 500.8 472.6 459.6 472.0 429.2 437.0 431.7 424.0 368.3
Fixed income securities (2) 151.2 147.0 141.7 140.5 136.5 130.6 132.1 130.2 122.2
Margin loans outstanding (10.2) (9.7) (9.6) (9.8) (9.1) (9.1) (9.1) (8.5) (7.5)
- ------------------------------------------------------------------------------------------------------------------------------------
Total client assets $1,165.5 $1,105.6 $1,077.2 $1,081.2 $1,000.9 $ 998.3 $ 996.3 $ 966.7 $ 876.7
====================================================================================================================================
Net growth in assets in client accounts
(for the quarter ended)
Net new client assets (3) $ 23.4 $ 11.2 $ 16.1 $ 16.8 $ 13.0 $ 6.7 $ 13.8 $ 24.9 $ 10.6
Net market gains (losses) 36.5 17.2 (20.1) 63.5 (10.4) (4.7) 15.8 65.1 21.4
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Net growth (decline) $ 59.9 $ 28.4 $ (4.0) $ 80.3 $ 2.6 $ 2.0 $ 29.6 $ 90.0 $ 32.0
====================================================================================================================================
U.S. Trust client assets (4) $ 146.9 $ 139.8 $ 138.8 $ 141.1 $ 137.3 $ 137.0 $ 135.8 $ 137.2 $ 116.1
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New client accounts
(in thousands, for the quarter ended) 128.7 144.3 150.6 133.6 114.2 139.1 159.8 145.5 123.9
Active client accounts (in millions) (5) 7.1 7.2 7.3 7.3 7.4 7.5 7.5 7.5 7.6
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(1) Excludes all proprietary money market, equity, and bond funds.
(2) All amounts have been adjusted to reclassify exchange-traded unit investment trusts from fixed income securities to equity and
other securities.
(3) Includes inflows of $3.0 billion in the third quarter of 2005 at U.S. Trust related to two Special Fiduciary business clients.
Includes a one-time special dividend from Microsoft Corporation of $1.2 billion in the fourth quarter of 2004. Includes
individual inflows (outflows) of $2.1 billion and ($6.0) billion in the third and second quarters of 2004, respectively,
related to mutual fund clearing clients. Includes inflows of $12.1 billion in the fourth quarter of 2003 at U.S. Trust related
to the acquisition of State Street Corporation's Private Asset Management group. Data excludes mutual fund capital gains
reinvestments, which were $3.7 billion and $1.1 billion in the fourth quarters of 2004 and 2003, respectively.
(4) Included in total client assets above.
(5) Active client accounts are defined as accounts with balances or activity within the preceding eight months.
The Charles Schwab Corporation Monthly Market Activity Report For September 2005
Investor activity for 7.1 million active client accounts(1)
2004 2005
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
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Change in Client Assets
(in billions of dollars)
Net New Assets (2) 5.9 3.9 4.6 8.3 4.0 6.3 5.8 1.1 3.9 6.2 6.3
Net Market Gains (Losses) 12.5 10.3 32.0 21.2 (17.7) 15.0 (17.4) (16.8) 26.9 7.1 30.4
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Total Client Assets
(at month end, in billions
of dollars) 1,000.9 1,015.1 1,051.7 1,081.2 1,067.5 1,088.8 1,077.2 1,061.5 1,092.3 1,105.6 1,142.3
====================================================================================================================================
Market Indices (at month end)
Dow Jones Industrial Average 10,080 10,028 10,428 10,783 10,490 10,766 10,504 10,193 10,468 10,275 10,641
Nasdaq Composite 1,897 1,975 2,097 2,175 2,062 2,052 1,999 1,922 2,068 2,057 2,185
Standard & Poor's 500 1,115 1,130 1,174 1,212 1,181 1,204 1,181 1,157 1,192 1,191 1,234
Schwab 1000 3,584 3,637 3,783 3,911 3,809 3,884 3,813 3,736 3,865 3,881 4,028
Clients' Daily Average Trades
(in thousands)
Revenue Trades (3) 132.5 153.7 192.1 187.3 185.9 190.9 196.6 182.7 169.4 177.3 189.5
Schwab Institutional(R) (4) 8.2 8.6 8.6 8.7 10.0 9.7 10.0 10.3 9.5 10.8 12.6
Schwab Private Client(TM) (5) 8.0 8.3 9.9 10.1 10.2 10.3 9.6 10.8 11.4 11.5 12.0
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Total 148.7 170.6 210.6 206.1 206.1 210.9 216.2 203.8 190.3 199.6 214.1
====================================================================================================================================
Daily Average Market Share Volume
(in millions)
NYSE 1,322 1,543 1,494 1,463 1,618 1,578 1,683 1,693 1,502 1,516 1,479
Nasdaq 1,511 1,731 1,828 2,042 2,172 1,950 1,849 1,839 1,686 1,748 1,674
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Total 2,833 3,274 3,322 3,505 3,790 3,528 3,532 3,532 3,188 3,264 3,153
====================================================================================================================================
Mutual Fund Net Buys (Sells) (6)
(in millions of dollars)
Large Capitalization Stock 202.3 189.3 465.7 75.6 137.4 547.6 106.5 91.8 388.3 364.5 236.0
Small / Mid Capitalization
Stock 336.8 434.1 719.9 454.7 46.8 573.2 514.5 39.0 150.7 486.8 438.8
International 445.8 441.0 884.2 893.8 946.4 1,115.6 1,006.6 587.5 485.7 411.7 513.7
Specialized 147.9 (8.5) 77.9 (34.4) 67.7 250.2 334.4 120.6 94.9 224.7 199.7
Hybrid 256.4 243.8 227.5 228.1 250.4 359.0 276.3 216.5 197.2 196.9 265.9
Taxable Bond 821.9 716.2 451.0 293.7 554.2 859.1 410.1 374.9 437.1 847.9 601.4
Tax-Free Bond 30.5 22.2 (7.5) 300.4 249.3 215.3 114.9 (67.8) 117.1 179.7 115.1
Money Market Funds (1,249.9)(1,165.3)(1,322.2) (22.8) 1,122.0 (1,575.9) 214.6 (985.5) (469.6)(1,409.0) 6.5
Clients opened 43,300 new
accounts during September 2005.
% change
Aug Sep Mo. Yr.*
- ----------------------------------------------------------------------
Change in Client Assets
(in billions of dollars)
Net New Assets (2) 10.3 6.8 (34%) 15%
Net Market Gains (Losses) (2.8) 8.9
- ----------------------------------------------------
Total Client Assets
(at month end, in billions
of dollars) 1,149.8 1,165.5 1% 16%
====================================================
Market Indices (at month end)
Dow Jones Industrial Average 10,482 10,569 1% 5%
Nasdaq Composite 2,152 2,152 -- 13%
Standard & Poor's 500 1,220 1,229 1% 10%
Schwab 1000 3,983 4,009 1% 12%
Clients' Daily Average Trades
(in thousands)
Revenue Trades (3) 189.1 205.7 9% 55%
Schwab Institutional(R) (4) 11.8 13.8 17% 68%
Schwab Private Client(TM) (5) 14.4 16.0 11% 100%
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Total 215.3 235.5 9% 58%
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Daily Average Market Share Volume
(in millions)
NYSE 1,441 1,683 17% 27%
Nasdaq 1,539 1,716 12% 14%
- ----------------------------------------------------
Total 2,980 3,399 14% 20%
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Mutual Fund Net Buys (Sells) (6)
(in millions of dollars)
Large Capitalization Stock 198.5 386.3
Small / Mid Capitalization
Stock 374.3 332.1
International 765.7 945.7
Specialized 78.8 230.1
Hybrid 177.5 261.4
Taxable Bond 761.4 678.5
Tax-Free Bond 113.4 61.7
Money Market Funds 944.6 (286.2)
(1) Active client accounts are defined as accounts with balances or activity within the preceding eight months.
(2) August 2005 data includes inflows of $3.0 billion at U.S. Trust related to two Special Fiduciary business clients. December
2004 data includes a one-time special dividend from Microsoft Corporation of $1.2 billion. September 2004 data includes an
individual inflow of $2.1 billion related to a mutual fund clearing client. Data excludes mutual fund capital gains
reinvestments, which were $3.7 billion in December 2004.
(3) Includes all client trades (both individuals and institutions) that generate either commission revenue or revenue from
principal markups (i.e., fixed income); also known as DART.
(4) Includes trades placed by investment advisors enrolled in an asset-based pricing program. Trading activity is included in the
program fees.
(5) Includes eligible trades placed by individual investors enrolled in Schwab Private Client(TM) (SPC). Specified levels of
trading activity are included in SPC fees.
(6) Represents the principal value of client mutual fund (no-load, low-load, load) transactions handled by Schwab and U.S. Trust,
including transactions in Schwab Funds(R), Excelsior(R) Funds and other proprietary funds. Includes institutional funds
available only to Investment Managers. Effective in March 2005, money market fund net buys (sells) include all Excelsior(R)
Fund transactions. Prior amounts have been adjusted to reflect this presentation.
* September 2005 vs. September 2004 The Charles Schwab Corporation